PureCircle Limited Trading Update (2428B)
January 05 2015 - 2:00AM
UK Regulatory
TIDMPURE
RNS Number : 2428B
PureCircle Limited
05 January 2015
PURECIRCLE LIMITED
TRADING UPDATE
PureCircle (LSE: PURE), the world's largest producer and
marketer of high purity stevia ingredients, today provides a
trading update in respect of the six month period from 1 July 2014
to 31 December 2014, being the first half of its Financial Year
2015 (1H FY15). The Company's interim results for 1H FY15 will be
announced on Monday 16 March 2015.
Sales
Sales in 1H FY15 are expected to be $43m, an increase of 24%
against 1H FY14 ($34.8m).
There was growth in sales across all our global sales regions
and in all of our ingredients primarily driven by new innovations
in our proprietary Stevia 3.0 TM portfolio of all-natural,
no-calorie sweeteners and natural flavor systems.
Margins, EBITDA and net result
1H FY15 gross margin, operating margin and EBITDA are expected
to increase in line with the increase in sales revenues.
The Group's 1H FY15 net result is expected to improve at least
50% compared to net result in 1H FY14. However the full FY15 net
profit benefits of the Group's geared business model are not
expected to be evident until 2H FY15, reflecting the H2 weighting
of sales.
Cash, net debt and funding headroom
In 1H FY15 the Group completed a $44m share placement and
renewed and restructured its principal bank facilities onto a new
$71m five year facility.
The Group ended 1H FY15 with net debt of $52m (1H FY14 $85m) and
cash and facility headroom of $76m (1H FY14 $59m). The Group is
sufficiently funded for its current expansion plans.
Commenting on the 1H FY15 trading, the Group CEO Magomet
Malsagov said: In 1H FY15 we have continued on our path of
systematic growth with increases in sales and improvements in
profitability.
In 1H FY15 the market has seen milestone product launches and
new market roll-outs by our clients, notably in the important
Carbonated Soft Drink category with the roll-outs of Coca-Cola Life
into the USA, Mexico, UK, France and Sweden with many other
countries announced for 2015 and Pepsi True into the USA and Pepsi
Next into Canada, Netherlands and Finland as well as Naturally
Sweetened Dr. Pepper into the USA. These developments coupled with
our strategy of introducing new and innovative ingredients and
solutions to meet identified market needs and our global customer
service infrastructure and smart partnerships are continuing to win
business for PureCircle.
In 1H FY15 we completed a share Placement to support expansion
of our supply chain and continued diversification of leaf supply
ahead of anticipated sales growth. Supply chain capacity expansion
is planned to commence in H2 FY15.
We are generating revenues from a wide range of natural
sweetener and flavor products and from a wide range of customers
directly and through our business partners. With accelerating
roll-outs of food and beverage products using PureCircle's stevia
solutions, particularly in the important Carbonated Soft Drink
category, the Company is confident of continued sales growth and
with it improvements in profitability.
5 January 2015
Enquiries:
PureCircle Limited (www.purecircle.com)
Magomet Malsagov, CEO +603 2166 2066
William Mitchell, CFO +44 7974 005 163
RFC Ambrian Ltd (NOMAD) +61 8 9480 2500
Stephen Allen
This information is provided by RNS
The company news service from the London Stock Exchange
END
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